MBS RECAP: Weaker After European Close, but Mortgages Hold Ground

By: Matthew Graham

If we needed any more evidence that the earlier price action had much to do with the spillover from European bond markets, the afternoon trade made it clear.  Immediately following the European close, the positive, slightly volatile trend in domestic bond markets turned into a calm, but resolute sell-off.

The overall damage was minimal--not even enough to take MBS or Treasuries into negative territory.  Fannie 3.0s only lost 3/32nds from the highs in the ordeal.  10yr yields were as low as 2.009 mid-day and rose to 2.037 by the close.

As for the positiveness from the morning hours, the domestic economic data does deserve some credit for helping out the higher-conviction European move.  Durable Goods data was OK at the headline level, but rather weak in every other respect--especially the revisions to last month's data.  Consumer Confidence kept the gloomy econ rolling, coming in at 97.6 vs 103.0 forecast.


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
101-23 : +0-04
FNMA 3.5
104-19 : +0-03
FNMA 4.0
106-26 : +0-02
Treasuries
2 YR
0.6210 : -0.0160
10 YR
2.0370 : -0.0210
30 YR
2.8580 : -0.0100
Pricing as of 10/27/15 6:31PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:48PM  :  ALERT ISSUED: Preemptive Negative Reprice Risk Considerations
9:55AM  :  European Bond Markets and Oil Lead Rally; US Bonds Reluctantly Follow

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Charles Beasley  :  "Seller credits can not longer be shown in a lump sum, we are required to move fees over to the seller side which mixes them in with the sellers fees with no way to differentiate the two"
Charles Beasley  :  "Just got my first CD for my first TRID closing, nightmare!"
Hugh W. Page  :  "My experience thus far is the title companies for the most part are figuring it out as they go along and are mostly confused."
Lenny Ujkic  :  "I had to explain 0 tolerance like they were 20 yr old getting their first DUI. Anything above 0 is a NO NO "
Compliance is Watching Me  :  "I have said it before...it's not the lenders I am worried about regarding TRID, it's the settlement agents."
John Paul Mulchay  :  ""How many pages are in the Deed of Trust you will be filing with the county at COE?""
Lenny Ujkic  :  "Wow these title companies are amazing ..... Pulling to teeth to get the Preliminary HUD and everyone is a TRID expert"